- May 27, 2013
- Posted by: Richard Feinberg
- Category: News
The Revel casino in Atlantic City was originally predicted to be one of the hottest new entertainment venues along the boardwalk. However, construction woes and financial fallout’s lead the casino in bankruptcy court just 13 months after opening its doors. Late last week, the casino walked out of bankruptcy court with a fresh future.
Wins and Losses
Part of Revel’s financial turmoil started long before opening its doors, with an astounding $1.2 billion in losses in unexpected construction costs. After it lost another $35 million during its first two quarters, the casino simply couldn’t continue down its path. The Revel casino sought bankruptcy protection earlier this year to help it resolve some of its reported $1.5 billion debt obligations.
After the successful completion of a Chapter 11 restructuring case, Revel is focused on the future. Having forfeited 82 percent ownership stake in the company in return for eliminating $1.2 billion of its $1.5 billion debt load, the company is confident it now has the “right-sized balance sheet, …and improved cash flow” to move into the future in a better position for success; as reported by Revel’s chief restructuring officer.